Key Takeaways
GoldQuest Mining Corp. (TSXV: GQC) shares plunged over 19% after the Dominican Republic government ordered a temporary halt to its Romero gold-copper project on May 5, following significant public protests.
"When citizens express worries and concerns, our duty is to act with caution and transparency," President Luis Abinader said in a statement, adding the project has been in the environmental review stage since 2005.
The suspension was triggered by demonstrations in San Juan province, where thousands marched to protest the mine's potential impact on the Sabaneta Dam, a critical regional water source. In response to the stock's sharp decline, the Canadian Investment Regulatory Organization halted trading in GQC shares on Monday, with plans to resume Tuesday.
The halt places the Romero project's future in question and highlights a growing trend of social and political risk for miners in Latin America, echoing Panama's recent closure of First Quantum Minerals’ Cobre Panama mine after similar nationwide protests.
GoldQuest, in a news release, said it respects the president's position and remains committed to advancing the project's Environmental and Social Impact Assessment (ESIA) in line with Dominican law and international best practices. "We will continue to work collaboratively with government authorities, local communities and stakeholders to ensure concerns are addressed thoughtfully and constructively," CEO Luis Santana said.
The Romero project is a gold and copper deposit located in the west of the Dominican Republic. While mining contributes about 2% to the nation's GDP, it often competes with tourism and agriculture, creating tension over land and water use. The country is home to Latin America's largest gold mine, Pueblo Viejo, operated by Barrick Gold, which is currently undergoing a major expansion.
This article is for informational purposes only and does not constitute investment advice.
